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To: re3 who wrote (7690)	6/20/2001 12:42:02 PM
From: yard_man	Respond to of 57684

action for last couple of days has not been good, but I wouldn't be as bearish as that fellow -- it would take a lot to shake some folks out now, methinks

To: re3 who wrote (7690)	6/20/2001 2:05:24 PM
From: Mark Fowler	Respond to of 57684

Ike i'd stay long 5% to 7% in gold right now i see a intermed pull back to approx. 49 -50.on Xau. Don't want to break the lower uptrend line near 49-50. Intermed most everything looks weak. >>Gold must always compete with time deposits as a short-term investment. Therefore, as interest rates rise, there is more to lose by being invested in the yellow metal rather than in an interest-bearing time deposit. As interest rates fall, there is less to be sacrificed by being invested in gold. On the flip side, lower short-term interest rates sometimes stimulate economic growth. Gold acts most strongly when inflation is outpacing the percentage gain in GDP, as is currently the case. In addition, gold tends to perform best when the spread between the risk-free short-term interest rate and the inflation rate is either negative or very small, indicating that individuals who have selected safe time deposits for investment are finding themselves either falling behind or remaining just barely ahead of inflation. Currently, the spread between 3-month U.S. Treasury yields and U.S. inflation is below one percent for the first time since the late 1970s, when gold staged its famous rally. << Ike If this continues to play out gold should do relatively well.especiall if the our Dollar weakens.